Manufacturing Factoring
Invoice Factoring for Manufacturers
A Reliable Solution For Manufacturing Businesses To Turn Outstanding Invoices Into Working Capital
Once the account setup is complete payments can be received in as 24 hours.
Always have working capital on-hand to quickly cover business expenses.
As your business grows so can your facility.
HOW CAN INVOICE FACTORING
CHANGE YOUR MANUFACTURING COMPANY?
Invoice factoring is a financing option that can be particularly beneficial for businesses in the manufacturing industry. This option involves selling outstanding invoices to a third-party company, known as a factor, in exchange for immediate cash.
Improved cash flow
The manufacturing industry often faces cash flow challenges due to the long payment terms associated with the industry. By using invoice factoring, companies can improve their cash flow and meet their financial obligations without having to wait for invoices to be paid.
Reduced administrative burden
Managing collections and following up on outstanding invoices can be a time-consuming and resource-intensive process. By using invoice factoring, companies can offload this administrative burden to the factor, who will handle all aspects of collections and invoice management. This allows companies to focus on their core business activities, such as manufacturing and product development.
Easy qualification
Qualifying for invoice factoring is typically easier than qualifying for traditional bank loans. Lenders will typically look at the credit worthiness of the client, rather than the creditworthiness of the manufacturing company. This means that even companies with less-than-perfect credit can qualify for invoice factoring.
No need for collateral
Invoice factoring does not require collateral beyond the outstanding invoices owed by clients. This can be particularly beneficial for manufacturing companies that may not have a lot of assets to use as collateral.
Improved credit rating
By using invoice factoring and making regular payments, manufacturing companies can improve their credit ratings over time. This can make it easier for them to access other financing options in the future.
Customizable terms
Invoice factoring offers customizable terms, allowing companies to choose the repayment schedule and terms that work best for their business. This can be particularly beneficial for manufacturing companies, which often have unique cash flow needs.
Access to working capital
Invoice factoring can provide access to working capital, which can be used to fund the day-to-day operations of the business. This can include purchasing raw materials, paying suppliers, and covering other expenses.
Invoice factoring can be a powerful financing option for manufacturing companies. It provides improved cash flow, reduced administrative burden, easy qualification, no need for collateral, improved credit rating, customizable terms, and access to working capital. If you are a manufacturing company looking for a way to manage your cash flow and improve your financial health, invoice factoring is definitely worth considering.